Trump to announce $15 billion investment to build new steel plant in Iowa

U.S. President Trump is expected to announce a major investment of up to US$15 billion (NT$476.7 billion) on the afternoon of the 28th local time. A Minnesota company plans to build a new steel plant in Iowa. As the U.S. midterm elections in November are approaching, the White House is actively promoting this major investment to show the government's determination to revitalize local manufacturing.

Reports indicate that Trump is expected to announce the investment proposal with Mesabi Metallics’ top executives at the White House. Mesabi Metallics has just recently opened a new iron ore mine in Minnesota. This is the first new iron ore facility to be opened in the state in 50 years.

A White House official said that the new steel plant in Iowa may start producing steel as soon as 2030. The initial annual production capacity is expected to reach 7.5 million tons and is expected to create more than 1,700 jobs. Subsequent expansion projects are expected to increase the plant's annual production capacity to approximately 10 million tons.

The U.S. domestic steel industry has been a key testing ground for Trump's use of tariffs to bolster his industrial and trade policies. Trump imposed tariffs on imported steel during his first term and raised the rate to 50% last year, arguing that domestic steel production was critical to national security. The tariffs allowed U.S. steelmakers to raise prices without the threat of cheaper imported steel.

U.S. steel prices are now among the highest in the world, driving up production costs for steel-reliant manufacturers. However, the American Steel Industry Association believes that the tariff policy has brought more than $40 billion in investment to domestic steel production in the United States and created thousands of new jobs.